You are right, Real Madrid and Manchester City are the two favorites in the Champions League this season, but unfortunately they had to meet too soon in the quarter-finals. I was basically expecting Manchester City to play Real Madrid in the semi-finals, but that never really came true.
Real Madrid has home advantage in the first leg, while Manchester City will have it in the second leg. Manchester City already have experience beating Real Madrid, but they will never be able to do the same thing every season if Ancelotti has learned enough from his mistakes last season. I would certainly expect the opposite, I mean Manchester City must can beat Real Madrid in the quarter-finals this season.
I know that Champions League is very competitive and hard to predictive winner but this time, it's only two teams I think can survive this tornado compete and that's Real Madrid and Manchester, I'm seeing this duo like we are already having a final already because from the other end, Barcelona will be remove by PSG where they will face Dortmund and I'm confident on this one that Dortmund will reach the final stage where they will fave either Real Madrid or Manchester City because I'm not sure who will come out legendary from this battle.
I'm kind of confident in what Arsenal will do to Bayern, they have the complete teams to win them but what will happen in Semi final wouldn't be good because I don't expect Arsenal to beat Real Madrid or Manchester City, even if Bayern survive Quarter final, I'm not sure they can pass through Real Madrid or Manchester City unless football happen to them.