They are currently performing slightly better than Manchester City's performance, but I still feel that their performance is not enough to do well in a tournament like the Champions League. Manchester City and Liverpool are not the favorites for the Champions League this season, but these are the teams we have talked about the most in other seasons. Manchester City management may not have realized that Manchester City performance will be so bad all of a sudden. Sometimes injuries to some players and some players leaving the club have a bad effect on the club. Manchester City need to improve their performance and perform better in their upcoming Champions League matches. If they can improve their performance then maybe they can finish the season in good position of Champions League.
Manchester City is not favorite for this year's UEFA Champions League but I think Liverpool is a favorite team for this year's UEFA Champions League. You said that Manchester City and Liverpool are not favorites for the Champions League, maybe that is wrong. Because everyone probably knows how well Liverpool have performed at the moment and they are probably the best team in the Champions League.
However, Manchester City is performing much worse than Liverpool. Some important players of this team are not in good form and also some players are injured, so the recent performance of this team is not favorable at all. According to the statistics of Manchester City's matches in the UEFA Champions League at the moment, they have won only two matches. Maybe Manchester City will face the powerful PSG club in their next match.
Liverpool are doing well in the English Premier League this season and I have seen some good performances in the Champions League but I think in other seasons we see the kind of performances we see from Real Madrid or Manchester City but we don't see them from Liverpool. If they perform in the same way that Liverpool have been performing, they may be defeated in the important matches of the Champions League. I think it would be better for them if they plan ahead and perform accordingly rather than going into important matches and losing. As Manchester City, Bayern Munich and Real Madrid are not in good form this season, this is a big opportunity for Liverpool and they must improve their performance to take advantage of this opportunity.