Divide and conquer will be the strategy for both sides in Brexit talks

Unity will be the key to winning negotiations

Bloomberg obtained a German memo regarding talking points on Brexit. Something that was likely prepared so talking points were ready ahead of the Article 50 trigger.

"We must not let ourselves be divided," it says and goes on to list some of the supposed high-minded principles of the EU.

Germany has been a tough talker ahead of Brexit but it exports twice as much to Britain as it imports and the UK is a critical market for German automobiles.

The problem for the EU is that the UK can try to extract concessions from individual countries or leverage threats. May's government is said to be probing soft spots in eastern Europe and Spain.

That will continue to be the strategy but it runs both ways. EU negotiators can leverage UK political divides like the current one with the House of Lords, can exploit the Scottish independence push and can threaten the City of London.

Ultimately, I think not much will change in terms of trade, because that's the best deal for everyone involved. The problem for the EU is optics. They need to be seen to 'punish' the UK somehow or other countries will follow Britain to the exit.

The risk is that it devolves into some kind of tit-for-tat fight but I just don't think the corporate overlords in Britain will put up with that.

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