'FT': The rise of Doria and Bolsonaro reflects Brazil's political vacuum.

Newspapers in Brazil - An article published this Wednesday (18) by the Financial Times talks about the current political situation in Brazil, with a slight recovery in the markets and the continuing political crisis.

FT analysis: One of the best-performing emerging markets faces unpredictable presidential elections, with names like that of far-right senator Jair Messias Bolsonaro emerging in the polls.

The British newspaper notes that the politician and former army captain became known for inappropriate quotes, such as telling a fellow congresswoman that she didn't deserve to be raped and that the biggest mistake of Brazil's former military dictatorship was torturing instead of killing its victims.

The Times points out that the country faces one of the most unpredictable presidential elections in its history next October. However, markets have been consistently drawn to complacency by a mix of global liquidity conditions and a shift in the Brazilian economy.

This week, President Michel Temer's government went through yet another political upheaval.

Inflation has fallen 6,8 percentage points since the new government took office in April 2016, gross domestic product is rising slightly after shrinking last year, and the unemployment rate is beginning to fall.

After the difficult days of Rousseff, when the budget deficit seemed out of control, Temer's government sold investors a narrative of fiscal responsibility and market reforms in the oil, labor, and other sectors.

So much so that some investors are beginning to be convinced that the next president, whoever it may be, will continue with Temer's reforms.

This would certainly make a lot of sense. After all, Temer has yet to approve the most important thing: a constitutional amendment to overhaul Brazil's generous pension system. Unless the average retirement age is extended from the mid-50s to the mid-60s, pension and payroll expenses will explode in the next two years.

First, nobody has the slightest idea who the next president will be. The emergence of once peripheral figures like Bolsonaro and João Doria shows the extent of the vacuum. In fact, although it is still too early to draw conclusions, the leading candidates in opinion polls for the presidential race are former president Luiz Inácio Lula da Silva followed by Bolsonaro.

The most worrying thing for the markets would be Lula's return. But he was convicted of corruption and will be barred from running if he loses an appeal against the decision. Furthermore, polls show that more voters reject him than like him.

Investors would feel more comfortable with São Paulo Mayor João Doria, a political newcomer similar to New York billionaire Michael Bloomberg, or his former political patron and now rival, conservative Governor Geraldo Alckmin. But Doria is inexperienced and little known outside his hometown. Alckmin, however, is seen as an old-guard politician in an election where voters are expected to reject the political establishment.

These are just the known candidates - there are other emerging names, from bankers to television presenters and former Supreme Court judges, who could still steal the show.

Investors probably won't have to worry until after Carnival, which takes place in February of next year, when the campaign will really begin.

Read the report from Financial Times.