Theo Walcott News
Everton are seventh on 24 points, two behind Manchester United, while Watford are 12th with 21 points from 16 games.
Everton went in front when Yannick Bolasie whipped in a deep cross from the right and former Arsenal winger Walcott brought the ball down before taking his time to fire home the winner and lift them to 45 points from 35 games.
Everton manager Sam Allardyce believes his expensively-assembled squad should be delivering much more on the pitch.
Arsenal forward Theo Walcott is edging closer to a £20 million move to Everton after he travelled to Merseyside for a medical as Toffees coach Sam Allardyce bids to boost his attacking options.
Everton are in talks with Arsenal to sign out-of-favour England forward Theo Walcott as Sam Allardyce seeks to bolster his side's goal threat.
Arsenal's attack will further be boosted when striker Danny Welbeck and midfielder Santi Cazorla return from their respective injuries.
Olympique Marseille also lost as Salzburg's Munas Dabbur took advantage of a cut-back to slide the ball home for the hosts, who take over at the top of Group I with four points.
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Pep Guardiola twice saw his City side go ahead, through Leroy Sane and then Sergio Aguero, but Arsenal twice responded via goals from Theo Walcott and Shkodran Mustafi.
Wenger made seven changes to the team humiliated by Bayern in the Champions League, with only goalkeeper David Ospina, Shkodran Mustafi, Granit Xhaka and Alex Iwobi keeping their places.
During a press conference,Wenger explained that the press linked Benzema to Arsenal because the striker is a Frenchman.
Southampton having reached the League Cup final after a strenuous midweek tie against Liverpool at Anfield.
Arsenal, who are fourth in the table and nine points behind leaders Chelsea after 18 games, will hope to continue their 22-year unbeaten home run against 17th-placed Palace.
City`s second win in five days lifted them into second place and closed the gap on leaders Chelsea to seven points ahead of the busy Christmas period.
Arsenal remain third with 24 points, one behind leaders Chelsea. Tottenham are fifth on 21.
Hours ago, Drogba, having witnessed Chelsea succumb to Arsenal for the first time in five years, took on Gunners striker Theo Walcott on Twitter.
Both the Manchester clubs, Arsenal and Liverpool registered good wins on a goal fest Saturday.
Arsenal exploited lackadaisical Chelsea defending to score three times in the first half as they claimed a first league win over their London rivals since a 5-3 triumph in October 2011.
Gunners will play fellow Premier League side Watford in FA Cup quarterfinals.
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