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Nós estamos em Lisboa, e eles estão em Londres.

Nós estamos em Lisboa, e eles estão em Londres.
We are in Lisbon, and they are in London.
From Lesson 10:Preposition for locations (em, no, na)·Portuguese (Portugal)

Questions & Answers about Nós estamos em Lisboa, e eles estão em Londres.

Why is it just em here instead of no or na?
The lesson teaches that em combines with words like o (the) to make no, or a to make na. However, most cities in Portuguese, like Lisboa and Londres, don't use the word "the" before them. Since there is no article to combine with, em just stays em.
Why do we use estamos and estão instead of somos and são?
To say where someone or something is located, Portuguese almost always uses the verb estar (which deals with temporary states or locations), not ser. So, we use estamos (we are) and estão (they are) to talk about physical location.
Do I have to say the words Nós (we) and eles (they), or can I leave them out?
You can usually leave out subject words like nós and eles because the verbs (estamos and estão) already tell us who is doing the action. However, in this sentence, keeping them helps create a strong contrast between the two groups: we are here, and they are there.
How is the 's' at the end of Nós and eles pronounced in this sentence?
Because the next words (estamos and estão) start with a vowel, the 's' at the end of Nós and eles connects to them and makes a "z" sound. When spoken naturally, it sounds a bit like "Nó-zestamos" and "ele-zestão".

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