Pikachu is the only one holding an item. It's called a light ball and it doubles pikachu's attack and special attack.
Pikachu-static Lv 88
Lapras-Shell Armor Lv 80
Snorlax-Thick Fat Lv 82
Venasuar-Overgrow Lv 84
Charizard-Blaze Lv 84
Blastoise-Torrent Lv 84
While battling red it is hailing which means blizzard has 100% accuracy and Lapras doesn't take damage from the hail. He will change Pokemon to what your Pokemon are weak to. He sometimes changes his Pokemon when they are weak.
Note: Red is the toughest Trainer in any Pokemon Game. Be Prepared....
Source: Experience, Memory, Bulbapedia, and Seribii