Monday morning headlines

Weekend sex: After starting out strong on Friday, numbers for "Sex and the City" tailed off Saturday and Sunday. The R-rated romantic comedy still took the weekend box office – the overall take of $55.7 million exceeded expectations – but the pace of business suggests that it might be a one-weekend wonder. "Indiana Jones and the Kingdom of the Crystal Skull" had a strong $46 million in ticket sales, bringing its total to $216 million. (NYT, DHD)

Fire won't impact business: Most TV production at Universal Studios had ended for the summer and movie work has been scaled back in case there's an actors strike. Demand is normally heavy for NY-fashioned back lots, and the other two studios that have them - Paramount and Warner Bros. - are often booked. (LAT)

Theme park reopens: Universal Studios will be back to business at 10 a.m. this morning after being closed all day Sunday. Universal CityWalk also reopens at 10 a.m.

Ryan Kavanaugh's sweet deal: The Hollywood financier and facilitator struck a deal in which a judge dismissed two out of three charges stemming from a drunk-driving arrest (he allegedly sideswiped an LAPD cruiser). There was some heavy lawyering going on, including a reminder to the court that Kavanaugh has been a heavy contributor to one of Sheriff Lee Baca's favorite charities, the Sheriff’s Youth Fund. (NYT)

Out of the woods?: Barton Biggs, one of Wall Street's more widely watched forecasters, believes the worst is over for the economy. There will be no recession and the stock market will start moving upward next year - provided that oil prices don't skyrocket to $175 a barrel in the coming months. Like anyone trying to predict the movement of money and markets, Biggs has had a mixed record. He correctly predicted the collapse of the tech bubble and in 2004 incorrectly predicted the fall of oil prices. (WSJ)

Law firm to cut deal: Expect the class-action firm Milberg LLP to settle with the government for around $75 million in connection with its role in the kickback scandal. Meanwhile, Melvyn Weiss, the firm's co-founder, is due to be sentenced today in L.A. after pleading guilty to criminal conspiracy. He'll serve up to 33 months in prison. From the WSJ:

The government alleged that the firm paid more than $11 million in kickbacks to clients in exchange for their serving as lead plaintiffs in securities class actions. These payouts allowed the firm to quickly file suits and become lead counsel, prosecutors allege, entitling Milberg to a large share of the fees: some $250 million over more than two decades. The firm, which is scheduled to stand trial in August, has denied wrongdoing.

Hilton raids Starwood: The Bev Hills-based hotel company will announce today the appointment of Ross Klein and Amar Lalvani to oversee Hilton's luxury properties (a growth area for the company). Both men played key roles in developing Starwood's W brand. From the WSJ:

Hilton's drive into the luxury segment comes nearly a year after private-equity colossus Blackstone Group LP struck a deal to buy the hotel company for $20 billion. Shortly after Blackstone closed the deal, it hired [Christopher] Nassetta, a well-known and highly regarded hotel executive, to run the company. Mr. Nassetta, formerly CEO of Host Hotels, was charged early on with expanding Hilton's luxury properties and creating a luxury boutique brand, such as W. Hilton has a strong presence in the upscale and budget sectors with brands like DoubleTree and Hampton Inn. But it has lagged in luxury, with only 19 luxury properties spread between two brands: Conrad and Waldorf-Astoria.

Terry Semel goes after IMG: The former Yahoo and Warner Bros. Entertainment CEO has been meeting with private-equity firms and the sovereign wealth funds of the United Arab Emirates, according to the NY Post. The question is whether billionaire Teddy Forstmann is willing to unload the property. Offering price is said to be in the $3-billion range.

Sources said Semel thinks he can transform IMG - which has a sports, entertainment, and media division and serves clients Tiger Woods, Gisele Bundchen and "The View" co-host Elisabeth Hasselbeck - into a media and content company and also bolster its digital operation. For Semel, the pursuit of IMG could help repair a reputation that tarnished during his years as Yahoo! CEO. Indeed, many Yahoo! insiders quietly blame Semel for making the Web giant vulnerable to Microsoft's current takeover attempts.

Flying to Brazil: Korean Air begins offering three-day-a-week nonstop service between LAX and Sao Paulo. It's part of the airport's efforts to beef up its international schedule in advance of other U.S. cities. (Daily Breeze)