Is there anything in us that can merit God's favor?
No, there is nothing in us that can merit any favor with God. It is all of His grace, which is unmerited favor. We don't deserve any of this. Grace could never have happened without mercy, and God poured out His mercy on Christ at the cross.
Les explains that our being 'more than conquerors' is not of what we have or through any ability of our own, but it is Christ Jesus who becomes everything. He cites Colossians that whatsoever we do in word or deed, we do unto Him, for in Him we live and move. Les stresses that there is nothing in us that can merit any favor with God—it is all of His grace. He defines grace as unmerited favor, which we do not deserve, and notes that grace could never have happened without mercy. Since God poured out His mercy on Christ at the cross, we no longer have to cry for mercy; now He can give grace. Les then moves to Romans 8:38 and Ephesians 6:12 regarding the believer's security in Christ.