Manchester United boss Sir Alex Ferguson concedes Manchester City are a title threat.
Ferguson also says Everton have been a big disappointment so far this season.
On United's progress and that of other teams in the English top flight, he said: "We (United) have started quietly just like Arsenal. But us and the Gunners will battle with Chelsea until the end.
"It's too early to make any predictions but we cannot forget the progress done by Tottenham.
"Houllier at Aston Villa needs time. The disappointment is Everton. I considered them favourites but they have just two points.
"Manchester City didn't have the best of starts but with the squad (Roberto) Mancini has, they will be contenders.
"I saw them beat Liverpool 3-0, with power and quality. Mancini has changed half of the squad, it's difficult to find rhythm yet.
"When they get continuity they will be a threat to everyone."
