Pep Guardiola bemoans Kyle Walker gifting Crystal Palace key penalty

Andros Townsend's screamer gave Palace the lead

If it makes Walker feel any better Palace would have scored before the ball even came to him had Andros Townsend not hit a post with his header, though the City full-back did not have one of his better days and was also at fault for the visitors' first goal.

It seemed to be business as usual for City after German midfielder Ilkay Gundogan nodded them in front in the 27th minute, meeting a Fabian Delph cross from deep with a firm, downward header.

City have lost just once in the league this season (to Chelsea) and now sit four points behind league leaders Liverpool following the Reds 2-0 win over Wolves on Friday night.

The Citizens had not previously dropped a single point in their nine home games this season, but Palace stunned the champions with an unlikely turnaround at the Etihad Stadium.

Palace's performance was completely unexpected, the Londoners having lost five of their last six away games and 5-0 on their last two visits to the Etihad.

And Liverpool FC boss Klopp - whose side are now at the top of the table - feels that Manchester City are clearly the team to beat in the title race this term.

Two defeats in three games for City, who lost at Chelsea a fortnight ago, have given Juergen Klopp's Liverpool the upper hand in the title race and turned the January 3 clash between the sides at the Etihad into a real showdown.

Defeat leaves City four points off leaders Liverpool who kicked off Gameweek 18 of the Premier League with another win to continue their relentless gallop at the top of the table.

Palace survive nervy finish to stun Man City
Result: Andros Townsend scores stunner as Crystal Palace shock Manchester City

Chelsea was another club that got upset, as a Jamie Vardy goal handed Leicester a momentum-producing 1-0 win at Stamford Bridge.

Arsenal forward Pierre-Emerick Aubameyang shot to the top of the Premier League scoring charts with two goals in the 3-1 home win over struggling Burnley in the day's early game.

Guardiola said: "Normally the selection, when you win I am a genius and when they win the selection is not good". The honours fell to Luka Milivojevic who finished easily for a three-goal lead.

The English right-back failed to close down Schlupp's first half effort, and gave away the penalty for Palace's third goal with an untidy sliding challenge in the box.

Bournemouth won 2-0 at home to Brighton, and Newcastle's home game with Fulham ended 0-0.

"We want Mesut like today", said Emery.

The Ralph Hasenhuttl revolution continued as Southampton beat Huddersfield 3-1 at the John Smith's Stadium.

Rafa Benitez's side pumped balls into the area in the second half, looking to find the head of striker Salomon Rondon, but the match finished in a stalemate leaving them 14th in the standings.

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