For the Allies - Britain, Canada, Australia and New Zealand - it was going VERY badly. The British Army had been driven out of Europe, with the loss of all its equipment, France had been forced to surrender, British cities were suffering nightly bombing, the approaches to seaports were being blocked by ships sunk by the new, and then unsweepable, magnetic mines, U-boats were wreaking havoc on the vital Atlantic convoys. The only "bright spot" was in North Africa, where Wavell had totally defeated the Italians, but that was to be short-lived, many of his troops being diverted to Greece and lost there, and the Mediterranean Fleet having heavy losses off Crete.
The U.S. was "well out of it", and, very sensibly, was likely to remain so !
