This is an amazing turn of events! I think you need to pull everything you have in the Mediterranean theatre to defend the British Isles, but I fear the worst!
The British have quite a lot of units in England, which, regardless of their current condition, is a good thing. London will probably be held for some time, possibly long enough for you to get your first units into England. It looks to me as though the British have established a solid line of defence south and west of London, but the Germans look likely to push rapidly up the east coast and circle London from the north.
Setting up a position to try to hold the north of England might work, but I think you really need the British forces as well if you are to succeed in this. It won't help much if they are trapped in the south and destroyed. On the positive side, the Germans don't have all that many units landed yet. Whether they continue to reinforce their invasion will probably depend on the success of the Royal Navy in intercepting their troop ships.
At the moment, I think you still have a chance of salvaging something from this mess. This should be a great game situation to play! Best of luck!
One question I can answer - the Soviet AI in HPP will not automatically DOW Germany if London falls. But it might, at some point, if the Germans don't attack first...









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( not that it is already time to scramble out , mind that ... just in case 


Malaysia gets Singapore, but Australia gets everything else in the Indian and Pacific Oceans, including Hong Kong. Maybe not the most plausible outcome, but I wrote up the event fairly quickly and didn't have new countries to populate those island bases, so they went to Australia for simplicity's sake.





























