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Manchester United fanned the embers of their top-four hopes with a 2-0 win against visiting Everton.
Erling Haaland, who missed a golden first-half chance, secured the points with a late strike.
Manchester City slipped out of the top four as Tottenham Hotspur made up ground with a third consecutive victory, beating Everton 2-1 at home.
Diogo Dalot was sent off in stoppage time for two yellow cards -- both for dissent.
Three-time Champions League winner United needed to beat Bayern Munich at home and hope for a favorable result in the other Group A game but lost 1-0 to the six-time winner.
Anthony Gordon scored the only goal in Newcastle's deserved 1-0 victory over Manchester United that propelled them up to fifth in the table on 26 points.
City thoroughly dominated shell-shocked United in the second half.
The English football icon won the World Cup in 1966.
Manchester United tasted a 1-3 defeat at Old Trafford while City won by the same margin against the Hammers.
Munich: Mathys Tel's stoppage-time goal proved enough for Bayern Munich to beat Manchester United 4-3 in their Champions League opening game. Tel scored with a spectacular finish in the second minute of injury time on Wednesday, restoring Bayern's two-goal lead just when United threatened to pull
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