You can use the pinch/punch effect to magnify, sort of. I just created a quick project with identical media on both tracks 1 and 2, then applied pinch/punch to the upper track as well as cookie cutter to give it a sharp outline. It looks more like a glass ball than a magnifying glass though. I suppose you could add track motion to magnify the track 1 clip and keyframe it to move with the cookie cutter. Give it a try and play.
There's a magnifying glass in the fontset Webdings. Use it in your text generator together with the pan/crop and track motion effects suggested. I'm sure there are dozens of magnifying glasses in various fonts that are floating free around the net.
Tor