The State of California and the watch maker brand and group Franck Muller have something in common. They are both in dire financial straights. Both have likely over extended themselves financially, and both seem to continue in operation somehow.

California governor Arnold Schwarzenegger was recently spotted in Milan, Italy shopping at a Franck Muller boutique store. While Schwarzenegger is a well known watch lover, I was not previously aware that he was a fan of Franck Muller timepieces. Now I know. For those of you that don't know, Arnold is a big fan of big watches. Luxury watch brands have been known to make special timepieces just for him. One relatively recent watch I hear that he purchased was sized at a whopping 60mm wide. To my knowledge, Franck Muller doesn't make anything this large, but they have some hefty timepieces.

The reports aren't clear as to what, if anything Schwarzenegger purchased. He spent some time in the store, as you can see by the candid security camera images. Perhaps if he is helping to save one fiscally troubled entity, he might also refocus his efforts on the State over which he is currently presiding as governor - that probably needs his help more.

Ariel Adams publishes the luxury watch review site aBlogtoRead.com.

Via Business Montres (in French).

Ukranian model / actress Olga Kurylenko, who played a Bond Girl opposite Daniel Craig in Quantum of Solace, has just been unveiled as the star of the 2010 Campari Calendar. Following in the footsteps of former calendar stars Salma Hayek, Eva Mendes and Jessica Alba, Kurylenko appears in a series of vignettes in different locations around Milan indulging in the classic Italian aperitif. Italian photographer Simone Nervi shot the photos, including the image above for December of a Gucci-clad Kurylenko surrounded by Ducati Monster-riding admirers at Milan's Piazza Duca D'Aosta. The twelve images will be featured in the limited edition calendar, with only 9,999 copies being printed to be distributed worldwide.

At the Pavilion Visconti in Milan, French champagne house G.H. Mumm just unveiled a special edition gift box designed for the recent Italian Grand Prix Formula One championship, won by Brawn-Mercedes driver Rubens Barrichello. Made from carbon fiber with gold plate details and a black velvet interior, the limited edition G.H. Mumm F1 Box will be available to order in Italy only for €5,000, or about $7,300. It's the cornerstone of a collection of champagne accessories commemorating the famed race designed exclusively for Mumm, founded in 1827 and now owned by Pernod Ricard.

[via BornRich]

This Carmen-Miranda-like bottle is the latest makeover of the iconic curvy Coca-Cola bottle. Rossella Jardini at Moschino designed this contribution to the Tribute To Fashion charity project for the Abruzzo Region, a project organized by Coca-Cola Italia in conjunction with the Municipality of Milan.

The Coca-Cola Light bottle is decked out in cotton sleeves, a polka-dotted flounced skirt and tiny red earrings.
Eight female designers designed sleeves for a limited amount of "Coca-Cola Light" bottles that are being sold currently. Donatella Versace, Alberta Ferretti, Anna Molinari from Blumarine, Veronica Etro, Silvia Venturini Fendi, Marni's Consuelo Castiglioni and Angela Missoni were the other designers chosen. The bottles actually walked the runway at Fashion Week in Milan. Proceeds will be used by The Abruzzo Charity Project to help people/families affect by the earthquake their last year.

Pershing makes some of the world's coolest high-performance yachts but conservation has never been very high on their agenda. That hasn't been a problem since the typical Pershing customer wants a killer craft and doesn't have to worry much about the price of gas. With their latest superyacht design however, the Pershing 108 (above) just unveiled in Milan, the famed shipyard has made a concession to the times and fitted split engines for the first time. The yacht's three 1815kW MTU diesel engines combined with three Arneson surface propellers can produce a total speed of 41 knots. However by not running all three you can cut back on consumption and emissions. The central engine will get you going at 11 knots, while two engines allow you to hit 23 knots.

Belowdecks everything is still luxury to the max. Copious amounts of Canaletto Walnut characterize the elegant, modern interior. The aft part of the saloon features a dining table for 10 and a large C-shaped sofa made by Poltrona Frau, which produced luxe leather seating and beds throughout. Access to lower deck accommodation is via a large stairway located behind the steering seats and comprises a large VIP cabin in the bow, 2 twin guest cabins, and a full beam master cabin in the center of the yacht. The master cabin's large windows allow plenty of natural light, and the suite features a walk-in wardrobe or fully equipped studio, a large, en-suite head and separate bathroom.

If a new report out of Italy can be believed - and something may well have been lost in translation - David and Victoria Beckham have failed in a bid to buy part of Milan's famed Castello Sforzesco (above), a 15th century castle that now houses artworks by Michelangelo and Da Vinci. Apparently the mega-rich Beckhams have been house shopping in Milan as he expects to sign a soccer contract there. Victoria is said to have set her eye on the centrally located, historically significant and imposing edifice, but was firmly denied by the Milan City Council. There were also rumors that Victoria wanted to buy a whole floor of the Armani hotel which is being built in the city, though that scheme has also come to naught. Hey, anything's possible with those two.

The 2008 Milan Furniture Fair had one particularly unique and sparkly exhibit consisting of Swarovski-encrusted snowboards. The display was the result of two leading Swiss and Austrian companies pairing up with the University of Art and Design Lausanne, where industrial design and visual communication students were given Nidecker snowboards in order to customize them by graphically inlaying Swarovski crystals.

Nidecker has a wide variety of top quality snowboards available (in all patterns and colors) but unfortunately the above glitzy and glamourous versions aren't for sale. Maybe they'll eventually be auctioned?

Via BornRich

An article from Bloomberg on Santa Giulia, a luxury project near Milan contains what just might be my favorite quote ever on developments gone bust. James Rehlaender, managing director at European Investors Inc., says, "When prices started to peak, developers were like crack users and would use all the money that banks were throwing at them." Indeed, and it's as good an explanation as any for what has happened at Santa Giulia, a project that was to include luxury apartments designed by Norman Foster and boutiques from top Italian brands like Dolce & Gabbana as well as hotels, schools and a church that is now starting to look like yet another project that will never be completed.

Luigi Zunino, the Italian entrepreneur behind the project is now hoping to find someone to take over the two-billion-euro development. The ambitious project is currently just a sprawl of abandoned grounds with ditches and unpaved roads. Zunino's company Risanamento SpA, is said to have 2.6 billion euros in debt from buying offices and homes around the world. Now if Zunino needs a quick sale to make some ready cash it may not come so easy. Italy's real estate prices are starting to fall. If things continue along this path Risanamento could run out of cash within months, but banks are hoping not to have to foreclose on any property. Housing cooperatives have built 1,900 homes in a southern area of the complex but now those residents are finding that instead of living in part of a growing community of retailers and businesses they are in a mostly deserted area with an incomplete infrastructure.

At the end of last year Risanamento did sell another project in Sesto San Giovanni, near Milan, to Limitless LLC of Dubai for 475 million euros but the development must be reviewed and approved by local authorities before the deal goes through.

The other day we told you about the eye-catching Audi Shark hovercar concept. Now here's an equally alluring Lamborghini design based on an insect. The carbon fiber-bodied Lamborghini Insecta concept (above) was created by Iulian Bumbu, a Romanian designer and graduate of the Alfa Romeo-sponsored Transportation Design Master Course at Milan's Scuola Politecnica di Design (SPD). As the name suggests, the Insecta concept was inspired by the world of insects, particularly the armored casings which protect beetles.

The Insecta's resemblance to a beetle's sheath is especially apparent viewed from the side and above. The Insecta is similar in dimension to Lamborghini's Gallardo, though it is lower and wider with a slightly longer wheelbase. It gets its power from the same 5.0 liter V10 engine and drivetrain found in the Gallardo, but the design enhancements and use of carbon fiber make it lighter and faster. A glass engine cover seamlessly blends into the glass roof providing a clear view of the mid-mounted engine for optimum visual appeal.

[Diseno-art via Luxuo]

There was a lot of drama going on this week in Milan and the clothes were just part of it. First there was the Roberto Cavalli's announcement that the Just Cavalli show was canceled. Then rumors swirled that luxury brand Gianfranco Ferré, which is owned by the same company Itierre, which has filed for bankruptcy, might also not show. But show they did and Roberto Rimondi and Tommaso Aquilano, the creative directors of the line, put on a hard-edged show of serious fashion. The models strode the runway with high poufs of hair, thickly drawn black brows and not a smile in the line up as they showcased velvet and satin at their least frivolous. Sculpted suits nipped in tightly at the waist with gleaming metal belts and the shoulders were pulled out into hard points. Even the ruffles looked dangerous. If the Marc Jacobs show at New York Fashion Week brought back the colorful fun side of the 1980s, this show showcased another side, a new version of Dynasty chic.

George Clooney is quite a pal. According to Hello magazine, the movie star just lent his lavish $6 million villa on Italy's famed Lake Como (above) to soccer superstar David Beckham and his wife Victoria. Beckham, whose taste for the finer things in life has been often noted here, is being fought over by two soccer teams, the LA Galaxy and Italy's AC Milan. The Beckhams will take some relaxing time out at the villa while waiting to see the if LA Galaxy will release him from his contract and allow a transfer to AC Milan, the magazine reports. "George has really taken David under his wing since the transfer trouble started," they note.

The luxurious villa, which has played host to many of Clooney's superstar pals, is just half an hour away from the Beckhams' base in Milan. Clooney, 47, and Beckham, 33, became friends after being introduced by Giorgio Armani, (whose underwear ads the Beckhams star in), at the Met Ball in New York last May. Luxe Lake Como, where scenes from the last two James Bond movies were shot, has long been a favorite retreat for Italy's rich and famous and the international jetset. As we mentioned last month, the contents of late designer Gianni Versace's villa there are being auctioned off by Sotheby's in March.

The economy just might be getting to Roberto Cavalli. He convened a press conference in Milan, Italy to cancel the show for his secondary line Just Cavalli, a press conference that the Guardian referred to as a temper tantrum. The Just Cavalli line is controlled by IT Holdings, a company which sought bankruptcy protection from its creditors Thursday.

Roberto Cavalli expressed his displeasure at not being able to have the show. He seemed very frustrated by the fact that the company was making 240 million euros in annual turnover over a year ago but was now in trouble. He stated that he felt very emotionally attached to the line. IT Holding owns several other Italian labels including Gianfranco Ferré, C'N'C Costume National and Versace Sport. Just Cavalli was a sexier line aimed at younger women and featured Kate Moss in one of its advertising campaigns. The main line Roberto Cavalli will show at the end of the week. Check out the designs from the last Just Cavalli show in the gallery below.

The economic crisis has reached the streets of Milan where the AFP reports that sales in the posh shopping area surrounding Montenapoleone street are way down. The Italian shops are discounting merchandising, launching more affordable lines and scaling back new store openings. Even at Prada, discounts are up to 40 percent. Part of the problem is that Russian buyers have cut off their orders for Italian goods. Knitwear maker Lineapiu sought bankruptcy protection early this month and other companies are seeking new deals and investors to help them stay afloat in the changing world of Italian luxury.

Milan's poor citizens are getting a special treat this year, caviar for Christmas. Officials in Milan seized 88 pounds of contraband beluga caviar from smugglers recently Instead of destroying the haul worth over $550,000, they are donating it to the Red Cross, Franciscan monks, care homes and organizations which prepare Christmas food for the homeless and poor around Milan. The Daily Mail reports that the banned beluga caviar is being served in portions more generous than those in fancy restaurants. The caviar was found in the refrigerator of a private house and several people have been arrested in the case.

Back in September my colleague Deirdre Woollard reported that the largest Giorgio Armani boutique in the world was opening in the designer's hometown of Milan. Now Armani has begun construction on a hotel there as well, located in an historic building designed by architect Enrico A. Griffini in 1937 that also houses an Armani store. "I feel a very special involvement in the project for the Armani Hotel Milano as it is located here, in my hometown," Armani tells Vogue UK.

"Every aspect of the hotel is a reflection of my aesthetic philosophy, and its position, above the Manzoni 31 concept store, will offer my guests the chance to experience a complete Armani lifestyle. I believe the hotel's design will perfectly fit the spirit of Milan as a capital of style, whilst offering a new experience of hospitality within its fashion district." The world's first Armani hotel is slated for Dubai, and plans are also underway for a London branch.