Chelsea will up their offer for the Foxes midfielder to £25 million in order to reunite the England global with N'Golo Kante, with whom he won the Premier League title in 2016 at the King Power Stadium.
"The first half pleased me because although Chelsea went to 10 men it was not easy".
Burnley then capitalized with a ruthless display that saw them score 3 times before the break.
The defeat, after a troubled summer, was a worrying echo of the manner in which Jose Mourinho's champions collapsed two seasons ago, costing the "Special One" his job - and on Saturday night bookmakers installed Conte as the favourite to be the first Premier League manager to leave his club this season.
Given Chelsea's selection problems, Conte must be envious of counterpart Pep Guardiola's options at Man City.
David Silva fed Sergio Aguero to run through and beat goalkeeper Mathew Ryan and five minutes later Lewis Dunk headed Fernandinho's cross into his own net. But it's a big win.
City is most pundits' favorites to win the title now Guardiola has had a second offseason to refresh his squad.
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The Blues came out with renewed vigor in the second half, pressing their opponents as they looked to reduce the three-goal deficit, but the champions were still lacking in the final third.
Two of Watford goals came from corners and the other from an attacking throw-in.
Sadio Mane, Roberto Firmino, and Mo Salah scored for Liverpool, which was without Coutinho amid interest in the playmaker from Barcelona.
"After that we lost our composure and conceded three goals", Conte said. Still, the sight of Huddersfield in first place was something to behold.
Alvaro Morata is up and running for Chelsea.
Drinkwater has made 218 appearances for Leicester in his six years with the club, scoring 14 goals and winning the Premier League and the Championship during his time in the East Midlands. It was his 199th Premier League goal and first for Everton since 2004. He returns as England's and United's record scorer, and with something to prove after spending most of last season on the substitutes' bench.
Egyptian defender Ahmed Hegazi, on loan to West Bromwich Albion from Al Ahly, scored on his debut in the 1-0 win at home to Bournemouth. But the fight-back after being reduced to 10 men and eventually nine men does show that the players are fighting for the manager, and that's a marked difference from that season of palpable discord.