The Spaniard has led Newcastle to top of the Championship this season.
Watson admits the Spaniard's decision to stay at the club has left him far more confident about his former side's promotion chances.
The former Toffees defender talked up his old boss' chances, despite being asked about Mark Hughes.
Aston Villa are looking to appoint a manager to take over from Eric Black for next season.
The former Magpies man is not happy in the slightest.
Steve Watson watched Everton take on Newcastle - and was impressed with Ross Barkley's display.
Jordan Rhodes moved to Middlesbrough from Championship rivals Blackburn Rovers on transfer deadline day.
Newcastle have signed Jonjo Shelvey from Swansea City.
Newcastle United defeated Liverpool 2-0 at St. James’ Park in the Premier League this evening.
Saido Berahino missed an easy chance for West Bromwich Albion against Manchester United in the Premier League on Saturday.