I agree that the premise is interesting. Good old blackmail... I look forward to seeing what happens later on as the plot certainly has potential.
I would advise being careful with the grammar though, as well as presentation. Mistakes like the sort you make do distract from the story itself, and are simple to fix. Be sure you are using a spell/grammar checker (use a word processing program like Word, or Openoffice/Google Docs (free to use) if you don't have that, or just an online one), as a lot of errors would be picked up by it.
As dudebot also said, you'd want to try to add some more 'intensity' to the battle and scene. Try to do that with a bit more description in the show department, and to give is more of a sense of how is he feeling rather than what.
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Ash looked furiously across the room. The battle field was torn up, rocks broken and cracks in the floor ran through the middle. Pikachu huffed on all fours looking across the broken plain. Pikachu was tired and Ash knew that it had to end quickly. Giovanni chuckled on the other side, flipping a pokéball into the air. His Nidoking was bent over as well, using its hands to slowly lift itself up. None of this made since to Ash, while it appeared that he was Giovanni was losing, he was still all smiles and getting happier about the outcome as the battle went. He felt as if somehow he was walking into a trap with this.
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Taking the first part as an example, bits like 'Pikachu was tired' are better off shown rather than told to us. Arguable you already do this ('huffed on all fours'), but then there's no need to tell us Pikachu is tired. Same with 'he was still all smiles and getting happier' - the former shows the audience Giovanni is pleased, so to then tell us he is 'getting happier' is a bit bland and unnecessary.
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“Pikachu iron tail one more time!” Giovanni chuckled one more time as Pikachu came at Nidoking full speed. Direct hit! Nidoking collapsed onto the floor ending the match.
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Here I'd suggest showing us more about the attack itself. After all this is Pokemon, in which the battles are generally the points of interest. Hence you should try to help the reader imagine the attack. Consider points, such as where did the attack hit exactly? How did Pikachu act - cried triumphantly? Glare down at the fallen Nidoking? What about the Nidoking, did it collapse silently or with a roar of pain?
Note that you don't need to address all of this at once/at all, but a little bit of extra detail throughout the chapter does make a difference. Touch on little bits like that every now and again, I suggest.
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Giovanni again snickered as he called Nidoking back. “Your strong , I could use someone like you at Team Rocket.” Giovanni declared to Ash
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Watch out for unnecessary spacing (after 'strong'), and You're not Your (former is shortening of 'You are', latter possessive e.g. Your bike). Lastly there's a missing full stop at the end, which a spell/grammar checker would have caught for you.
Dialogue which has something following the dialogue in the same sentence like here shouldn't have a full stop before the ending dialogue tag either. Here you continue it with 'Giovanni declared to Ash', which tells us who said it/how it was said. Hence it isn't a sentence by itself but rather a continuation of the dialogue, and so you shouldn't have a full stop in the middle of the sentence (but you can have ! or ?, etc... just not a full stop). For sake of example:
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"This is mine," said the boy.
"This is mine!" said the boy.
"This is mine." said the boy.
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The first two are correct, and the latter not. However if it was '"This is mine." The boy shook his fist.' then it works as the part following the dialogue is a separate sentence.
So for instance here:
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“It’s not worth it Ash.” Giovanni scolded, as if he had read Ash’s mind about his next move.
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The full stop after 'Ash' should be a comma.
There's a couple other things including those already pointed out, so I'll leave it to you to fix those. Just note that fixing such errors will really improve your story and help to not distract a reader from the actual story.
Good luck with your fic!