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I don't think that I have ever seen Reno's point of view written so well. You are very insightful about his character.

I love how Reno is so brash and confident and furious that he is being kept waiting and suspicious about why he is being kept waiting, but he is still thrown totally off-guard by Tseng and nearly terrified out of his wits by Tseng's apparent mind-reading abilities.

Tseng's casual toying with his trainee is wonderfully done too. The dialogue is very engaging and well-written.

Some nitpicking:
(and I mean nitpicking) I thought that maybe here: "Reno looked up, trying to appear bored but something in his voice had struck him." it would be clearer if you wrote "but something in Tseng's voice . . ." However, it is obvious who the speaker is really, so leaving it works too.

Here "Tseng smirked as he dug out a thin metal cigarette case, Shinra logo emblazoned on the face." I would just add "the Shinra logo . . . "

I find Tseng's lectures and taunts captivating and amusing; I'm sure Reno doesn't agree with me. I really enjoy Reno's final conclusion about the Turks. This is a really entertaining story.