Php echoes before everything

I placed this code on my sidebar to show the recent posts.
The php tags(the_permalink and the_title) appear before everything, not inside the code as i want.

I’m usind in_category inside get_posts.

The PHP code

<?php
$posts = get_posts('numberposts=10&offset=1');
foreach($posts as $post) :
setup_postdata($post);
?>

<?php if ( in_category(5) ) {
echo '<li><a href=/"'.<em>the_permalink()</em>.'/" alt=/"Leia o post/"><b>'.<em>the_title()</em>.'</b></a>';
} else {
echo '<span class="bad-cat">This is a BAD category</span>';
}
?>

<?php endforeach; ?>

The result is like this

http://localhost/wordpress/?p=31Gamurize<a href=/"/" alt=/"Leia o post/"><b></b></a>

And should be like this

<a href="http://localhost/wordpress/?p=31" alt=/"Leia o post/"><b>Gamurize</b></a>

Why is this happening???