The Blues played some superb football as they came from behind to continue their excellent start under Sven and remain in the top three.
Martin Petrov followed up his two-goal display at Fulham last week with another fine performance. Petrov's pace caused Newcastle no end of problems, with the Bulgarian winger scoring the equaliser and crossing for Emile Mpenza to head City's second.
But Elano was the star of the show for City, orchestrating some fine passing moves and playing at least two fantastic through-balls for Stephen Ireland, the first resulting in Petrov's goal.
The Brazilian ace then sealed the points with an amazing free-kick from 30 yards which rocketed straight into the top left corner. Newcastle keeper Shay Given saw it all the way but couldn't get near it - Elano hit it so well that if it was a further 10 yards out, it still would have gone in.
It just keeps getting better and better for City as Sven's summer signings get more accustomed to playing together.
"I'm very happy for the team and for the fans," said Sven. "You can feel the fans like what they see and that's important.
"The players were very good and I can understand that if you are a football fan, you like your team to win and play good football.
"Many of the games we have played at home this season have seen us play good football, but today has maybe been the best. We beat a very good team 3-1 and I wouldn't say we dominated, but we created many more chances than they did, so I'm very happy."
Sven feels his players are getting better with time and sensed a five-star performance was on the cards during the week.
"I said at the press conference on Thursday that the training that day was absolutely top class, and they showed that today," he added.
"I don't think we deserved to go 1-0 down because we'd played well and created chances without taking them. The first chance they had - they took it."